© Reuters.
BURLINGTON, Mass. and FRISCO, Texas – Keurig Dr Pepper Inc. (NASDAQ: NASDAQ:), a prominent player in the North American beverage market, has announced the public offering price of $29.10 per share for 86,956,522 shares. The offering, which was made known to the public recently, includes an option granted to the underwriter, Morgan Stanley, to purchase up to an additional 13,043,478 shares within a 30-day window following the offering date.
Simultaneously, KDP has expressed its intention to repurchase 35 million shares as part of the same offering, a move that falls under its existing $4 billion share repurchase authorization. After this transaction, approximately $1.8 billion of the authorization will remain.
Assuming the underwriter exercises the option in full, JAB, the seller in this secondary offering, will retain around 21% of KDP’s outstanding common stock post-repurchase, increasing KDP’s public float to roughly 79%. Additionally, JAB’s remaining shares will be locked up for 180 days under an agreement with the underwriter.
The offering is contingent on an effective registration statement, including a prospectus, previously filed with the U.S. Securities and Exchange Commission (SEC) on August 19, 2022. Interested parties can obtain these documents from the SEC’s website or directly from Morgan Stanley.
Keurig Dr Pepper is a leader in the beverage industry, boasting more than $14 billion in annual revenue and a workforce of approximately 28,000. The company’s portfolio includes over 125 owned, licensed, and partner brands, with key names like Keurig®, Dr Pepper®, and Canada Dry® among them.
The company’s statement, based on a press release, includes forward-looking statements that are subject to various uncertainties. These statements are based on management’s current expectations and may differ significantly from actual results. Keurig Dr Pepper highlights that it is not obligated to revise these forward-looking statements unless required by law.
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